Question

Keynes referred to competitive devaluations designed to export unemployment as     .

		nationalist self interest
		pragmatism
		debase and erase
		beggar thy neighbor

Which of the following played a role in generating the stock market bubble of the "roaring 20s"?

		an increase in industrial productivity
		technological innovation in industry
		fiat money and loose monetary policy
		bearishness on the part of investors

Answer 1

Answer 1. Beggar thy neighbor

reason- Beggar thy neighbor is an international trade policy in which one nation can transfer it's loss to anothe rnation. One of the ways to do it is to devalue the currency in order to raise exports and the other country will not be able to compete and will be forced to move and this leads to rise in unemployment in that nation also.

Answer 2. Bearishness on the part of investors

reason- Due to the downward economic condition of the US econony during 1920s, the investors panicked and begin selling their shares at whatever prices they bought causing the ultimate share market fall.